Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Silver Wheaton Corp. (USA) (SLW), Cypress Semiconductor Corporation (CY): Here’s What Gabelli Funds Has Been Buying

Silver Wheaton Corp. (USA) (NYSE:SLW)Every quarter, many money managers have to disclose what they’ve bought and sold, via 13F filings. Their latest moves can shine a bright light on smart stock picks.

Today let’s look at Gabelli Funds, the mutual-fund and closed-end fund arm of GAMCO Investors and familiar to many because of Mario Gabelli, the well-known value investor. Indeed, the folks at Institutional Investor named him Money Manager of the Year in 2011, citing an average annual return of 16.3% for his GAMCO Investors since its inception in 1977. That’s darn impressive.

The company’s reportable stock portfolio totaled $16.5 billion in value as of June 30, 2013.

Interesting developments
So what does Gabelli Funds’ latest quarterly 13F filing tell us? Here are a few interesting details.

The biggest new holdings were ExactTarget (which was recently acquired by and Buckeye Technologies. Other new holdings of interest include Silver Wheaton Corp. (USA) (NYSE:SLW). Silver Wheaton Corp. (USA) (NYSE:SLW)’s stock has been ailing, in part due to falling prices for precious metals. It has a beautiful business model, where instead of engaging in actual (and risky) mining, it simply buys the rights to income from mines in exchange for financing — but it’s not perfect, and the company has been burning cash. Investors have been hopeful over a new deal it struck with Vale for rights to big chunks of Vale’s gold production at two mines, but not all of its forays into gold are as promising.

Among holdings in which Gabelli Funds increased its stake was Cypress Semiconductor Corporation (NASDAQ:CY) , a tech company with an appealing 3.5% dividend yield and a supplier of touchscreen controllers for Kindles, among other things. The company recently blew away earnings estimates, with its PSoC 4 circuits “the fastest overall new product ramp in Cypress Semiconductor Corporation (NASDAQ:CY)’s history.”

Gabelli Funds reduced its stake in lots of companies, including Energy Transfer Partners LP (NYSE:ETP). Recently yielding 7%, Energy Transfer Partners LP (NYSE:ETP) boasts roughly 47,000 miles of natural gas gathering and transporting pipelines, as well as other assets it got via its acquisition of Sunoco last year. The master limited partnership is focused on gas and is vulnerable to drops in its price. It’s burdened with significant debt, too. Gross margins have been down lately, and free cash flow is negative, as capital spending has increased. Dividend increases have not been bountiful, but management is aiming to improve on that front, in part via restructuring.

Finally, Gabelli Funds’ biggest closed positions included H.J. Heinz and Acme Packet, which was snapped up by Oracle Corporation (NYSE:ORCL).

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.